The Toronto stock market was higher Monday, building on last week's strong gains amid a major corporate development in the consumer sector.
The S&P/TSX composite index remained positive 19.26 points – off its highs of the morning -- to greet noon at 13,155.35
The Canadian dollar faded 0.06 cents to 97.11 cents U.S.
Maple Leaf Foods is looking at the possibility of selling its bakery business, which includes a 90% interest in Canada Bread, maker of Dempster's and other brands.
Based on recent stock market values, Canada Bread had a value of about $1.6 billion prior to the announcement Monday. Maple Leaf shares jumped $1.25 or 9.4% to $14.55 while Canada Bread shares surged $5, or 8.2%, to $66.25.
The gold sector advanced, while Barrick Gold Corp. rose 29 cents to $19.36.
The base metals sector rose as December copper lost early momentum and was unchanged at $3.30 U.S. a pound. HudBay Minerals was ahead 11 cents to $8.39.
Turquoise Hill Resources shares jumped 34 cents or 7.4% to $4.93 as a dispute between Chinese customs officials and customers of Rio Tinto's huge Oyu Tolgoi mine in Mongolia was resolved. Turquoise Hill says that a convoy carrying concentrate departed from the Chinese-border warehouse on Saturday and adds the withdrawal of concentrate from the Chinese-border warehouse by customers is expected to ramp up quickly.
As revenue is recognized when customers collect concentrate, Oyu Tolgoi will now begin recording revenue. Turquoise Hill runs the mine and is 66% owned by Rio Tinto.
The energy sector rose and Imperial Oil climbed 66 cents to $46.91.
Techs led decliners while BlackBerry shed 12 cents to $8.52.
On the economic beat, Statistics Canada said the wholesale trade rose 0.5% to $49.8 billion in August, the fourth increase in five months, mostly due to gains in the motor vehicle industry. Market call was for a rise of 0.3%.
ON BAYSTREET
The TSX Venture Exchange gained 6.51 points to 957.48
Eight of the 14 Toronto subgroups were upward midday, led by gold, up 1.8%, materials, taking on 1%, and the metals and mining group, ahead 0.4%.
The half-dozen laggards were weighed by information technology, shrinking 0.5%, real-estate, down 0.4%, and health-care stocks, dipping 0.3%.
ON WALLSTREET
After last week's big rally, investors were taking a more cautious approach Monday, as they look for clarity about the economy and corporate earnings.
The Dow Jones Industrials settled back 15.13 points to pause for noon hour at 15,384.50
The S&P 500 index dropped 1.78 points to 1,742.72. The NASDAQ picked up 7.80 points to 3,922.08
Investors jumped back into the market last week after the U.S. government reopened and lawmakers ended a budget showdown that threatened the nation's credit rating.
But the tone was more muted Monday as investors assess the economic damage caused by the shutdown and weigh the outlook for corporate earnings.
McDonald's shares fell after the fast food chain reported earnings that met expectations, but global sales growth was tepid.
Halliburton shares fell after the oil field services company's earnings met expectations.
AT&T shares gained after the company announced over the weekend that it had inked a $4.8-billion U.S. lease deal with Crown Castle International Corp
Netflix is among the companies slated to release quarterly results after the market closes.
Shares of JPMorgan Chase rose following news over the weekend that the bank and the Department of Justice have tentatively agreed to a $13-billion U.S. civil settlement to resolve several investigations into the bank's mortgage securities business.
Despite the record fine, the settlement would be a positive for the stock since it means JPMorgan can finally move beyond its legal woes, according to analysts at Biard Equity Research.
Apple shares were up 2% one day before the company is expected to reveal its first revamped iPad in a year.
On the economic front, the National Association of Realtors said existing home sales fell 1.9% in September. The group said rising interest rates and the fallout from the government shutdown will weigh on the housing market in the months ahead.
Prices for the 10-year U.S. Treasury sagged, lifting yields to 2.60% from Friday’s 2.59%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.09 to $99.72 U.S. a barrel.
Gold prices picked up $1.10 to $1,315.70 U.S. an ounce.
